Lixiang Education Holding Co. Ltd. (Nasdaq: LXEH) lifted off in New York public trading today and tanked 19% by Thursday afternoon, to $7.50 per share.
First anticipated to go public on Wednesday along with three other Chinese companies, Lixiang made its debut on the first day of October, raising $31 million.
The pricing, at $9.25 per American depositary share, was within the marketed range of $9 to $11.
AMTD Global Markets and Loop Capital Markets were the joint bookrunners on the deal.
Founded in 2001, Lixiang was among the top ten private school operators in Zhejiang Province in terms of student enrollments for the 2019-2020 school year, according to Frost & Sullivan research cited in its prospectus.
As of September 2019, Lixiang reported 4,558 students enrolled and 322 teachers. It said revenues in 2019 grew 6.7% year-over-year to $21.9 million. Net income last year soared 72.3% to $6.8 million. In the first half of 2020, revenues were $12.3 million, a 3.1% increase from the same period a year ago. Net income dropped 24.9% year-over-year to $3.8 million, according to the filing.
Lixiang said it intends to use the proceeds from its offering to attract more students and teachers, build new campuses and upgrade facilities. It also considers potential acquisitions.
As it shifted into red territory, Lixiang Education joined in the losses of the other newly-listed Chinese companies.
Boqii Holding Ltd. (NYSE: BQ), a pet products retailer, ended its debut day at $7.20 per share – below the issuance price of $10 – and on Thursday tanked an additional 14% intraday to $6.17 per share. Its IPO was worth $70 million.
Yalla Group Ltd. (NYSE: YALA), a Chinese-owned voice-chat platform operating in the Middle East and North Africa (MENA), priced at $7.50 per share and closed at $7 on Day One. On Day Two, YALA stock sank an additional 7% by the afternoon, to $6.50 per share. It raised $139.50 million.
Chindata Group Holdings Ltd. (Nasdaq: CD) escaped the fate of its peers on Day One, closing a whopping 20% higher on debut day. The Bain-backed data center operator raised $540 million for shares priced at $13.50 apiece. On Thursday, however, CD shares fell back on sell-off, trading at $14.74 per ADS, down 9%.